Tuesday, Feb. 3, 2015
Watch:
https:/www.youtube.com/watch?v=wbvfir2x344
Read:
Description of the three activities: Spaghetti tower, Marshmallow Challenge, and Index Card
Tower, as well as an overview of the PM presentation task. All files are posted under

For the midterm
Use the Lesson Guide documents to determine which chapters/sections have been
assigned to be read. You can look at these, especially the examples, to complement the
lecture notes.
Everything we have covered in class is fair game for the mi

1. You are borrowing $100,000 from a bank for four years. Which interest rate would you prefer and
why: 6% compounded semi-annually, or 5.8% compounded monthly? Given your choice of interest
rate, how much will you owe at the end of year 4?
2. If you star

Helpful notes (hopefully) on interest rates
Nominal: 2% per month 6% per quarter 12% per 6 months 24% per year.
o Compounding period is mentioned, but its effect is not considered. Example: 12% per year,
compounded monthly. Unless the word effective is us